Chiang sent a letter to Stocktons city manager Monday informing him that the city is being audited.

If my office audits Stockton, they will have real numbers and it will help them with their reports, Chiang said.

The state withheld paying Stockton a $65,300 monthly payment for February and a $1 million payment for March. The Controllers Office said it will resume payments when Stockton fills out financial reports.

A spokesperson for the city of Stockton said the audit is not unexpected.

If it helps everyone understand the seriousness of our fiscal condition, we welcome them and will cooperate fully, said Connie Cochran. Stockton is in a mediation process to avoid bankruptcy.